FAR 2.0 and the Non-FAR Boom: Civilian Govcon's Window Gets Wider

Faster awards. Lower barriers. New paths in for firms that don't fit the traditional mold. 

The big idea: While most industry attention is going to DOD/W acquisition reform, civilian contractors who learn the new acquisition pathways will find shorter timelines, fewer compliance gates, and more room to compete. 

WHY IT MATTERS 

EO 14192 (“Restoring Common Sense to Federal Procurement”) and the FAR 2.0 overhaul have stripped out most non-statutory rules. Agencies are implementing the changes through deviations. Translation: the rules you priced into your last bid may not apply to your next one. 

Moreover, the April 30th EO on preference for Firm Fixed Price acquisition means fewer concerns over pricing compliance for new entrants.  

THE BIG PICTURE 

The Office of Federal Procurement Policy (OFPP) and the FAR Council led the rewrite — plain language, fewer mandates, and companion buying guides that live outside the FAR. Stated goals: faster acquisitions, greater competition, better results. For firms reticent to jump into govcon by compliance overhead, that reads as lower barriers to entry.  

BY THE NUMBERS 

• 60–120 days: typical Commercial Solutions Opening (CSO) award timeline. 

• 10 pages or 10 minutes: the standard initial CSO submission — white paper or video. 

• 1/3: non-government cost share required on a CSO — unless you qualify for a waiver. 

• $50M: prior-year CAS-covered (govt accounting standards) contract ceiling. 

NON-FAR IS NO LONGER A DOD-ONLY PLAY 

Other Transactions (OTs) — invented at NASA in 1958 for prototypes — are now authorized at Commerce, Energy, HHS, DHS, DOT, NASA, NSF, ODNI, and ONDC – not just DOD/W. Civilian agencies are posting these opportunities through distribution lists, agency-component websites, social media, and industry consortia. If you’re not on those lists, you’re not in the conversation. 

WHY CSOS DESERVE CIVILIAN ATTENTION 

DoD’s EO 14265 mandate is grabbing the headlines, but the mechanics travel: 

• “Commercial” is a broad term. Covers research, prototypes, AND production. 

• Easier discussions. Faster than traditional source selection — and friendlier to non-traditionals. 

• Real contracts. Awards are fixed-price or fixed-price incentive, FAR or non-FAR. 

• Waiver-friendly. Small businesses and non-traditional contractors get cost-share relief. 

• A path to scale. Successful prototypes can flow to non-competitive follow-on production awards. 

THE CATCH 

There’s no model contract. IP rights, fees, modifications, and payment terms are all negotiated. Get a lawyer who knows non-FAR. The upside is real — so is the downside if you sign a bad contract. 

WHAT TO DO THIS WEEK 

• Check your waiver eligibility. Small business status, CAS exposure, prior-year revenue. 

• Map your targets. Identify 2–3 agency components in your wheelhouse and find their CSO/OT distribution lists or explore joining a relevant consortia. 

• Study the playbook. Watch the Defense Innovation Unit’s “DIU CSO Process” walkthrough on YouTube — civilian agencies are borrowing it. 

• Track the deviations. Price your next bid against the new FAR 2.0 rules, not the old ones.  

• Sell productized services for fixed price. T&M and CPFF require senior level approvals – so skip that route and competitively price in your management risk. 

THE BOTTOM LINE 

FAR 2.0 plus expanded non-FAR pathways equals more shots on goal for firms that move fast and structure deals carefully. The old moat — compliance overhead — is shrinking by the day. The new moat is knowing which door to knock on. 

Contact us for more information.